Research indicates that employers aren’t properly investing in
training and engaging their workforce, and potential employee turnover
further threatens to dull their competitive edge

The Cornerstone OnDemand 2013 U.S. Employee Report, conducted by Kelton, indicates that companies are aggravating the skills gap by not properly investing in training and engaging their workforce. (Graphic: Business Wire)

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The Cornerstone OnDemand 2013 U.S. Employee Report, conducted by Kelton, indicates that companies are aggravating the skills gap by not properly investing in training and engaging their workforce. (Graphic: Business Wire)

SANTA MONICA, Calif.--(BUSINESS WIRE)--With the impending fiscal cliff, a lack of sustainable job creation and
an expectation of relatively high unemployment for the foreseeable
future dominating national discussions, there’s another serious issue
looming for employers in 2013: the skills
gap. Organizations challenged with a lack of talent must act now or
suffer the fate of losing their competitive edge, whether it is closing
their skills gap or retaining existing employees, according to the
results of a new Cornerstone
OnDemand (NASDAQ: CSOD) survey conducted by Kelton.

The research
reveals that more than 19 million Americans are planning to change jobs
in the next year. And with the average cost to recruit and train one
employee estimated at 2.5 times an employee’s salary, U.S. businesses
are looking at a steep price tag of $2 trillion on potential employee
turnover.*

The survey also reveals three concerns that face nearly every company
today:

Increasing absence of ongoing training and development. In the
past six months, only about a third (32 percent) of employed American
adults has received training and development to better perform their
job.

Misaligned goals and expectations between managers and employees.
Only one in four respondents (25 percent) has established career goals
with their manager/employer.

Lack of individual recognition and performance feedback.
Two-thirds (66 percent) said they haven’t received useful feedback
from their manager/employer.

“The worldwide skills shortage is quickly becoming a crisis across
companies of all sizes and industries,” said Jason Corsello, vice
president of corporate strategy and marketing for Cornerstone OnDemand,
a global leader in cloud-based talent
management software solutions. “Unfortunately there is no silver
bullet to address the global skills shortage, but companies can take
action to build programs today and invest more in ongoing training and
continuous feedback for their employees.”

The survey highlights four opportunities for employers to evolve their
people management and development strategies in the coming year and help
them narrow the skills gap, increase engagement and retain talented
employees:

Reskilling high-potential employees and filling critical roles.
To address skill gaps and fill critical roles, organizations should
look to their own workforce for high-potential employees vs. relying
on external candidates. Reskilling employees with targeted training
helps to bolster talent pools and prepare for future business needs.

Coaching-style performance management. Rather than waiting for
formal reviews, managers need to foster a more continuous, meaningful
dialogue with direct reports and create opportunities for real-time
performance coaching and one-on-one feedback. Employee goals should be
more in sync with business objectives, as well as their own career
aspirations. And training and development becomes a more essential
part of the mix in order to make performance and career discussions
more actionable.

Crowdsourcing performance feedback and recognition. Social
feeds and badges can help managers extend the feedback loop to other
parties, such as peers or project teams. Sharing of feedback and
recognition becomes more immediate, real-time and relevant. Not only
can this give managers better insight into how employees are truly
performing, it also allows employees to curate positive feedback and
kudos in a central location that they can reference for more formal
discussions.

Just-in-time training and development. Whether it is through
social networks, mobile devices or in the cloud, today’s technologies
can make it easier and more convenient for employees to access the
just-in-time information and training they need to do their jobs to
the best of their abilities anytime, anywhere. When blended with
traditional development opportunities, these new ways of learning can
help to create efficiencies and lower the cost of training initiatives.

The Cornerstone OnDemand employee survey was conducted by Kelton,
a leading national public opinion company, between November 23 and
November 26, 2012 among 494 nationally representative employed Americans
ages 18 and over, using an email invitation and an online survey.
Results of any sample are subject to sampling variation. The magnitude
of the variation is measurable and is affected by the number of
interviews and the level of the percentages expressing the results. In
this particular study, the chances are 95 in 100 that a survey result
does not vary, plus or minus, by more than 4.4 percentage points from
the result that would be obtained if interviews had been conducted with
all persons in the universe represented by the sample. The margin of
error for any subgroups will be slightly higher.

Cornerstone OnDemand is a leading global provider of comprehensive
learning and talent management solutions. We enable organizations to
meet the challenges they face in empowering their people and maximizing
the productivity of their human capital. Our integrated
software-as-a-service (SaaS) solution consists of the Cornerstone
Recruiting Cloud, the Cornerstone Performance Cloud, the Cornerstone
Learning Cloud and the Cornerstone Extended Enterprise Cloud. Our
clients use our solution to source and recruit top talent, develop
employees throughout their careers, engage employees effectively,
improve business execution, cultivate future leaders, and integrate with
their external networks of customers, vendors and distributors. We
currently empower over 10.3 million users across 186 countries and in 38
languages.

Average cost to recruit and train one employee is estimated at 2.5
times an employee’s salary = $107449.02 (Source: Deloitte 2009,
“Managing Talent in a Turbulent Economy: Clearing the Hurdles to
Recovery”)